The torque-responsive. The effects of news on Private

The rate of cash dollar in the Ukrainian exchange rose sharply on Friday, April 19, on the news of PrivatBank.

Circumferentially administrative court of Kiev ruled on the illegality of the nationalization of PrivatBank.

The government insisted that there is nothing to fear, the decision is still not final and has not gained legal force. But the market immediately reacted to the news.

Currency exchange rate

In the Kiev exchange selling rate of the American currency rose by 16.51 27,1277 kopecks to UAH/USD, buying rate – by 10.33 26,7807 kopecks to UAH/USD.

The average rate of buying the Euro rose by 2.33 30,0490 kopecks to UAH/EUR, the selling rate increased by 6.94 kopecks. to 30,5879 UAH/EUR.

The story of PrivatBank already putting pressure on the exchange rate, said the head of the National Bank Yakov Smoliy.

“We are unable today to predict how this will affect the rate. Although some fluctuations have been considerable – the difference between the morning and closing in the interbank market amounted to plus 15 cents on the dollar. We are doing everything possible to prevent panic and to prevent information influence on the stability of the banking system,” – said resin.

The official rate of NBU on April 19 fell from 26,687 UAH/$ 26,837 UAH/$.

Eurobonds

Quotations of Eurobonds of Ukraine on 18 April fell by 0.6% in securities maturing in 2021 and to 1.4% for securities maturing in 2027 for the news about the decision of the administrative court of Kiev to recognize illegal nationalization of PrivatBank.

The fall of Eurobonds-2027 was the highest since February of this year, with the result that their yield is increased by 0.24 percentage points to 8.6% per annum.

Quotations of Eurobonds maturing in the years 2023-2026 in 2032 fell to 1-1,3%, and their yield increased by 0.18 to 0.29 percentage points – to 8.2-of 8.55% per annum.

Securities maturing in 2021 slipped in price on 0,6%, and in 2022 – by 0.83%, which led to increase the current yield by 0.28 percentage points respectively to 7.65% and almost 8% per annum.

In addition to 0.6% prices dropped and GDP-warrants of Ukraine, which is now listed at a price of about 65,85% of par.

The consequences of large-scale

Smoly believes that the attempt to return to the former owners of PrivatBank can result in the liquidation of the Bank.

“The return of the Bank’s previous owners is impossible today, according to the law, but the decision that was made in 2016, if you return (to the situation), then there is the risk that the guarantee Fund will have to pay depositors of UAH 100 bn. Today it will be issuing the funds. They can have a significant impact on inflation“, – he said.

Affected other banks. “These decisions (the courts) can destroy the whole stability that has been achieved,” he said.

The head of the NBU Yakov Smoliy said that should inform the President, “every six hours about the situation in the banking market”.

Everybody calm down

The national Bank of Ukraine together with the Ministry of Finance has declared that will protect the interests of the shareholders of PrivatBank after the court decision on the recognition of its nationalization illegal.

In a joint statement of the Ministry of Finance, the NBU and the Bank says that today, “PrivatBank is the largest and most profitable financial organization of the country, clients are 22 million Ukrainians. The Bank operates transparently and consistently, and fully performs its obligations to customers”.

“The sole shareholder of PrivatBank is the people of Ukraine. We are determined to protect the interests of the shareholders of the Bank under any circumstances, relying on our powers of Ukrainian and international legislation, as well as the support of the international community and civil society in Ukraine”, – said in a statement.